Parliament Approves 1.3 trillion loan to Investor to Construct an International Specialized Hospital.
Below is my analysis of this current trending story;
*1. Who is the Investor? What is the investor bringing on board?*
Ans. Finasi limited is the investor, he designed and proposed the concept of setting up a specialized Hospital in Uganda, this means Finasi has paid initial costs for designing the proposal including it’s costs.
Finasi is also facilitating the loan facility for this project, it’s Finasi that found the right partner and convinced them to provide this loan to Uganda.
Finasi is in partnership with Papa Giovanni XXIII Hospital in Italy to operate and maintain the hospital for eight years.
*2. Who will own the hospital?*
Ans. The government of Uganda will own the Hospital, the is contrary to what many have been proposing, it’s a Public-Private partnership but Finasi will only Manage for 6 years. So the word investor is being misused here.
*3. Is the Hospital Necessary for Uganda at this particular time?*
Ans. According to the ministers, the specialised hospital once completed will be used to treat patients with complicated diseases who would otherwise travel out of the country to seek specialised medical care.
The Hospital will come with a nurse and doctor’s school plus world-class accommodation for doctors and nurses to ease their work on patients and other world-class facilities doctors have been crying for.
In 2014 Uganda spent 74 million dollars, 2015 Uganda spent 62 million dollars, 2016 we spent 67 million dollars and in 2017 92 million dollars on specialized treatment abroad, this gives us a total of 295 million dollars only 84 million dollars short of what is required to construct our own Specialised Hospital.
*4. Will Uganda earn from this Hospital?*
Ans. Definitely, Uganda is expected to save up to 60 million dollars annually well as earn directly 30 million dollars annually in revenue. Meaning that in 12 years the country will have paid back the loan.
*5. Why is a section of politicians against it?
a) Ugandans react before analysing facts and figures, MPs tend to seek cheap popularity and share half baked information to masses that react emotionally.
b) Politics, the Hospital will be complete in Two years coinciding with the next General Elections, politicians have a natural feeling that the ruling party will make this their achievement, therefore the desire to fight the project with mere technicalities.
c) Ignorance Of political leaders and poor PR machinery of Government, many political leaders are not capable of internalizing documents provided to them for proper debate and analysis, hence giving wrong information to the public.
d) external political influence, with the current situation one is inclined to think that some Ugandan politicians are forced to frustrate projects by external players, Imagine Uganda building the best and biggest Hospital in Sub-Saharan African patients travelling to India from all over Africa will save and travel to Uganda instead. Why would one fight such a project because of technicalities?
*6. Is the cost of this hospital inflated as alleged?*
Ans. This we all can’t know for sure, you can only determine the inflation of costs if you are in the business of building hospitals of this nature, or if you have received bids from other constructors. Unfortunately, this was a proposal, you can not call for bids on someone proposal it’s their idea you either work with them or don’t work at all.
*7. Finasi capable of constructing a hospital of this nature?*
Ans. Finasi limit is in partnership with Roko Construction company, we all know what Roko is capable of, they constructed Workers House, Mapera House and many other important Buildings.
*8. Will the cost be affordable for Ugandans?*
Ans. One can argue that specialized treatment is always expensive, indeed it is and will stay expensive, however one should note that cost is expected to go down by over 50% due to a fact that flight cost and upkeep for patient caretakers will all be eliminated. As operations start Uganda will now have Medical insurance companies take up this specialized treatment schemes. What is important is that it’s an investment that is very viable for Uganda.
Note: There is a reason why dictatorships work, AMIN never asked for Parliament’s Permission to purchase properties in Brussels, London, Paris, and the USA which today many give him credit for, in democracies however permission of parliament is sort and all sorts of debate come up, this is where you will find people stopping a good government project for no reason rather than greed.
In conclusion, after careful research I don’t see any problem with the approval of this loan, in any case, I will be proud that we will now contribute money for Ugandans to be spent in Uganda rather than India.
Analysis by: Seruga Titus